Key Highlights:

  • Revenue came in at USD 90.0 billion in the fourth quarter, an 18% increase driven by strong demand across.
  • Non-GAAP EPS totaled USD 4.74, a 23% increase when adjusted for the impact of investments in OpenAI.
  • Q1 2027 Revenue Guidance was expected to be between USD 89.85 billion to USD 90.95 billion.
  • Azure and Other Cloud Services Revenue was reported at Grew 43% year over year, with customer demand continuing to exceed.

Microsoft Corporation (NASDAQ:MSFT) is scheduled to report third quarter results on Wednesday, Oct. 28, after the market close. Consensus estimates call for adjusted earnings per share of USD 4.71 on revenue of USD 90.62 billion, against a market capitalization of USD 3.96 trillion.

In the most recently reported quarter, Revenue came in at USD 90.0 billion in the fourth quarter, an 18% increase driven by strong demand across the Azure platform and first-party AI applications. Non-GAAP EPS totaled USD 4.74, a 23% increase when adjusted for the impact of investments in OpenAI.

Microsoft Cloud Revenue and Other Business Trends

Microsoft Cloud Revenue came in at USD 59.3 billion for the quarter, growing 27% and surpassing USD 214 billion for the full fiscal year. Commercial Remaining Performance Obligation (RPO) totaled USD 678 billion, representing 84% year-over-year growth reflecting long-term customer commitments. Microsoft 365 Copilot Seats stood at Over 30 million paid seats, with net seat adds more than doubling sequentially. GitHub Copilot Revenue was reported at Accelerated over 60% quarter over quarter following a business model shift to usage-based pricing in June.

Fabric and Foundry Adoption and Capital Position

Fabric and Foundry Adoption came in at Paid Fabric customers reached 40,000, while Foundry customers grew to 100,000 with revenue more than doubling year over year. Agent 365 Scale totaled Nearly 40 million agents registered across tens of thousands of companies within two months of launch. Capital Expenditures stood at USD 41 billion in the fourth quarter, reflecting investments in AI infrastructure and data center sites. Data Center Capacity was reported at Added 31 data centers in the fourth quarter and 1 gigawatt of capacity, on track to double overall capacity in two years. Maia 200 Performance came in at Delivers 30% better performance per dollar compared to existing hardware and is currently scaling to support OpenAI and MAI models.

Productivity and Business Processes Revenue and Additional Detail

Productivity and Business Processes Revenue came in at USD 37.8 billion, a 14% increase driven by Microsoft 365 Commercial cloud momentum. Intelligent Cloud Revenue totaled USD 39.3 billion, growing 32% primarily due to Azure and GitHub Copilot consumption. More Personal Computing Revenue stood at USD 12.9 billion, a 4% decline as Windows OEM and Xbox performance offset search advertising gains. Shareholder Returns was reported at USD 10.2 billion returned through dividends and share repurchases in the fourth quarter, totaling USD 43 billion for the full fiscal year. FY 2027 Capital Expenditure Outlook came in at Estimated at USD 175 billion, impacted by the shift from finance to operating leases for data centers.

Figures to Follow in the Release

Investors can watch third quarter results against the figures management has already put on record, including the following: Q1 2027 Revenue Guidance was expected to be between USD 89.85 billion to USD 90.95 billion, representing 16% to 17% growth.